• EUR/GBP pares the biggest daily jump in three weeks below short-term key moving average.
  • Global scientists, policymaker recheck initial fears from the South African covid variant.
  • US, Israel and Australia flash positive signals, UK pushes for the emergency G7 meeting.
  • Speech from ECB’s Lagarde, Brexit updates are important too.

EUR/GBP takes offers to refreshes intraday low near 0.8455, down 0.23% intraday ahead of Monday’s London open.

The cross-currency pair jumped the most since early November the previous day amid grim concerns over the South African variant of the coronavirus. However, the recent positive updates concerning Omicron, as the World Health Organization (WHO) dubbed it, seem to have underpinned the market’s cautious optimism.

Even so, the UK is up for calling an emergency Group of Seven (G7) meeting to discuss the pandemic problem. “The British government announced new measures on Saturday to try to slow the spread of the new COVID-19 variant, toughening rules for people arriving in Britain and ordering the use of masks in retail settings and on public transport in England,” said Reuters.

Elsewhere, Brexit tensions remain on the cards and add to the additional challenge for the British Pound (GBP). “UK Brexit Minister Lord David Frost said on Friday that, while we would still like to find a negotiated solution with the EU on the Northern Ireland Protocol, the gap between our positions is significant and we are ready to use Article 16,” said Reuters on Friday. On the same line were the ongoing UK-France tussles over fishing rights.

Above all, the Bank of England’s (BOE) versus the European Central Bank (ECB) story gains major attention and keeps the EUR/GBP sellers hopeful. The reason could be linked to the ECB policymakers’ sustained rejection of the monetary policy tightening and mixed data contrast to the recently firmer UK details and mixed comments from the BOE board.

It’s worth observing that the latest updates from the US National Institutes of Health (NIH) and Israeli covid official Professor Dror Mevorach joined Australia’s Health Minister Greg Hunt to underpin the latest rebound in the US Treasury yields and the stock futures.

Looking forward, the German Harmonized Index of Consumer Prices (HICP) for November, expected 5.4% YoY versus 4.6% prior, will offer immediate direction to the EUR/GBP price moves. Additionally, updates concerning Brexit and the covid strain, as well as comments from ECB President Christine Lagarde, adds to the watcher’s list.

Technical analysis

Failures to cross 50-DMA direct EUR/GBP sellers towards multiple lows marked during October around 0.8420 before directing the quote to the 0.8400 threshold. Additionally challenging the pair buyers is the descending trend line from September 29, near 0.8560.

Additional important levels

Overview
Today last price 0.8456
Today Daily Change -0.0020
Today Daily Change % -0.24%
Today daily open 0.8476
 
Trends
Daily SMA20 0.8478
Daily SMA50 0.8495
Daily SMA100 0.852
Daily SMA200 0.8565
 
Levels
Previous Daily High 0.8496
Previous Daily Low 0.8411
Previous Weekly High 0.8496
Previous Weekly Low 0.8381
Previous Monthly High 0.8624
Previous Monthly Low 0.8403
Daily Fibonacci 38.2% 0.8463
Daily Fibonacci 61.8% 0.8443
Daily Pivot Point S1 0.8426
Daily Pivot Point S2 0.8376
Daily Pivot Point S3 0.8341
Daily Pivot Point R1 0.8511
Daily Pivot Point R2 0.8546
Daily Pivot Point R3 0.8596

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays under pressure below 1.0500

EUR/USD stays under pressure below 1.0500

EUR/USD is having a difficult time staging a rebound after having dropped below 1.0500 earlier in the day. FOMC Chairman Powell's relatively optimistic comments on the economic outlook provided a boost to the dollar in the second half of the day, weighing on the pair. 

EUR/USD News

GBP/USD rebounds modestly, trades near mid-1.2100s

GBP/USD rebounds modestly, trades near mid-1.2100s

GBP/USD fell to its lowest level in nearly two weeks near 1.2100 but managed to stage a rebound. With the dollar preserving its strength on the back of FOMC Chairman Powell's hawkish comments, however, the pair stays in negative territory near 1.2150.

GBP/USD News

Gold steadies near $1,820 following earlier drop

Gold steadies near $1,820 following earlier drop

Gold is struggling to make a decisive move in either direction and seems to have steadied near $1,820, where it closed on Tuesday. Despite the broad-based dollar strength, XAU/USD holds its ground amid a more-than-2% decline seen in the 10-year US yield.

Gold News

Fresh lows for crypto markets in sight as recovery gains come undone

Fresh lows for crypto markets in sight as recovery gains come undone

Bitcoin price faced an intense sell-off as it approached the recent weekly open, indicating that investors are looking to book profits. This downswing has caused Ethereum, Ripple and other altcoins to take a dip as well.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures